Alan and Sara Winthrop are a married couple who file a joint income tax return. They have two children, and they have legitimate itemized deductions totaling $27,500. Their total income from wages is $243,500. Assume the following tax table is applicable:
Alan and Sara Winthrop are a married couple who file a joint income tax return. They have two children, and they have legitimate itemized deductions totaling $27,500. Their total income from wages is $243,500. Assume the following tax table is applicable:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Alan and Sara Winthrop are a married couple who file a joint income tax return. They have two children, and they have legitimate itemized deductions totaling $27,500. Their total income from wages
is $243,500. Assume the following tax table is applicable:
Married Couples Filing Joint Returns
If Your Taxable
Income Is
Up to $19,750
$19,750-$80,250
$80,250-$171,050
$171,050-$326,600
$326,600-$414,700
$414,700-$622,050
Over $622,050
What is their marginal tax rate?
O a. 35.0%
O b. 22.0%
O c. 24.0%
O d. 32.0%
O
You Pay This Amount
on the Base of the
Bracket
e. 12.0%
$0.00
1,975.00
9,235.00
29,211.00
66,543.00
94,735.00
167,307.50
Plus This Percentage on
the Excess over the Base
10.0%
12.0
22.0
24.0
32.0
35.0
37.0
Average Tax Rate at Top
of Bracket
10.0%
11.5
17.1
20.4
22.8
26.9
37.0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8d494b17-8b36-49e0-a6a1-3408f9cee0a7%2F4741c72f-73a0-4781-ba5d-a8404d57dfd9%2Fe79wkx_processed.png&w=3840&q=75)
Transcribed Image Text:Alan and Sara Winthrop are a married couple who file a joint income tax return. They have two children, and they have legitimate itemized deductions totaling $27,500. Their total income from wages
is $243,500. Assume the following tax table is applicable:
Married Couples Filing Joint Returns
If Your Taxable
Income Is
Up to $19,750
$19,750-$80,250
$80,250-$171,050
$171,050-$326,600
$326,600-$414,700
$414,700-$622,050
Over $622,050
What is their marginal tax rate?
O a. 35.0%
O b. 22.0%
O c. 24.0%
O d. 32.0%
O
You Pay This Amount
on the Base of the
Bracket
e. 12.0%
$0.00
1,975.00
9,235.00
29,211.00
66,543.00
94,735.00
167,307.50
Plus This Percentage on
the Excess over the Base
10.0%
12.0
22.0
24.0
32.0
35.0
37.0
Average Tax Rate at Top
of Bracket
10.0%
11.5
17.1
20.4
22.8
26.9
37.0
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